New data shows that companies are passing along cost increases from tariffs to consumers, despite President Donald Trump’s pressure not to do so. A survey by the New York Federal Reserve found that 77% of service firms and 75% of manufacturers passed on at least some of the tariff costs to their customers.
The survey revealed that over 30% of manufacturers and nearly 45% of service firms passed on all of the increased costs, with price hikes happening quickly after Trump slapped steep levies on trading partners. In fact, more than 35% of manufacturers and nearly 40% of service firms raised prices within a week of seeing tariff-related cost increases.
Trump announced plans to impose “reciprocal” tariffs on over 180 countries and territories in April, but later rolled back the levies for three months, causing stock market volatility. Now, companies are waiting for July 9 deadline for the return of those suspended tariffs, during which time they must cope with continued confusion about trade policy.
The survey also found that nearly nine out of 10 CEOs surveyed said they raised prices or planned to soon, with about seven out of 10 chief executives planning to hike prices by at least 2.5%. Corporate executives have been careful in how they speak about the impact of Trump’s policies on their business, but behind-the-scenes comments reveal concerns about supply chain disruptions and pricing uncertainty.
The data provides further evidence that President Trump’s tariffs are having a significant impact on consumers, with companies passing along cost increases despite pressure not to do so. As companies await the July 9 deadline for suspended tariffs, they must navigate ongoing confusion about trade policy and its effects on their businesses.
Source: https://www.cnbc.com/2025/06/04/companies-already-raise-prices-or-plan-to-blaming-tariffs-data-shows.html